All Forum Posts by: Carrie K.

I have a very lenient policy on this. It might be because I'm in a really hot rental market. (Our longest vacancy ever was two weeks, and rents have been rising.) I think our policy is consistent with legal requirements that you can only collect your actual damages and that you must mitigate / minimize those damages. So if they're leaving in under a year, I charge my turnover cost (cleaning, and painting if necessary, which it usually isn't). If it's over one year (if they renewed their first lease) I don't charge cleaning, and over two years, I don't charge painting unless it's far beyond "normal wear and tear." I charge them for the rent until I can re-rent it, but I get it listed right away and work with them to hold showings while they're still there, so often that vacancy is a matter of days. I could move at a more normal pace instead of putting it at the top of my To Do list, but I like to get it re-occupied right away for my own peace of mind. I

I try to make it easy on them because I don't want people living there who don't want to be there for a whole list of reasons. It generally works out well for us (knock on wood).

For 203k, don't you have to pick someone from HUD's list? Please correct me if I'm wrong.

A second job might help. Like others, I worked a full time office day job and also bartended at night to afford my first property.

I'm a little unclear on what exactly you're trying to buy. Does it have other bedrooms so that you can have roommates? I think that'd help. It sounds like you already thought of that, so here are a few other ideas: could you find a place that has non-bedroom space that you could nevertheless rent out as a bedroom to increase the number of rooms rented? (E.g., a dining room that nobody needs. Podcast 329 discusses converting garages to bedrooms.) Instead of renting each bedroom out for say, $500, could you put two beds in there and rent it to two people for $350 apiece? Could you earn more putting the rooms on AirBnB? Could you go camping one weekend every month and put your own room on AirBnB then? Could you buy on a larger lot and split the lot to sell half? Could you rent the garage or a storage shed out for parking or boat storage or something? Could you get enough land with the house that you could set up a yurt or trailer or tent space and market it to tourists as "glamping?" 

I agree it might be a tough challenge in today's market -- I'm dealing with the same thing. The other podcast I like on this topic is #338, James Dainard. They talk about how you can't find deals these days -- you have to create deals by finding value other people aren't seeing.

Good luck!

You know that Brandon Turner story about the time he was changing a toilet (if I remember right, dumping the contents on himself in the process?) and finally decided he was going to stop trying to do it all himself? Same. I was fixing up a rental DIY-style, and when I finally started hiring people, I was like "ohhhh." Professionals do in 3 hours what can take me 2 months to do, and I typically would spend about 60 percent as much just buying the tools. I should've just gotten a loan for all the work I did myself. Renting the place out earlier would've totally paid for the cost. 

This is probably too obvious to be useful, but have you looked into house hacking? I'm currently looking into house hacking combined with rehab using a loan like Homestyle that will also cover rehab costs. I bet you could get cash flow if you bought a large lot single family and built a separate "accessory unit" cottage in the back yard or converted the garage to a rental. Good luck!

 Good point on just asking the lawyer! And yes, I can't see myself ever skipping an inspection. I like to get all the inspections: pest and building, and also a roof inspection, a sewer line inspection, and an HVAC inspection. I'm happy to pay a hundred bucks now to know what might cost tens of thousands later. Thanks!

Hi Jay, did you ever find anyone? We're looking to make some connections. Thanks!

Thank you, John and Traci! I'll check out that website, John. Traci, thank you for the detailed answers. 

I had some technical difficulties when posting and accidentally ended up posting this twice, so for anyone reading this with the same question, you may also want to read the answers here. As I said over there:

"It sounds like I was making it a bit more complicated than I needed to. I've been through a few personal house purchases, so I have that experience (and the standard CAR form) to draw on for the purchase and sales agreement, working with the mortgage broker, and inspections. And then it sounds like the title company and bank would put together that 500-page set of papers I signed at closing. I'd consult a lawyer as well." And Traci, thanks for the tip about the CLUE report. I appreciate your points about the value of hiring a realtor, as well.

Thanks again!

Thanks so much, Will and Leah! I really appreciate the help. It sounds like I was making it a bit more complicated than I needed to. I've been through a few personal house purchases, so I have that experience (and the standard CAR form) to draw on for the purchase and sales agreement, working with the mortgage broker, and inspections. And then it sounds like the title company and bank would put together that 500-page set of papers I signed at closing. I'd consult a lawyer as well.

I had some technical difficulties when posting and accidentally ended up posting this twice, so for anyone reading this with the same question, you may also want to read the answers here. 

Thanks again!

It seems like most of the deals I read about are from direct marketing, and are purchased without an agent. I'm ready and willing to start marketing (have my letter written and everything), but how do the logistics of the sale come together? Does a title company put together that massive packet of documents? Is it the lender? How can I get more info about everything that happens after the seller and I agree upon a price (should I be so fortunate) and an inspector checks the place out for me? 

Are most of the people sharing these deal stories about buying outside of the MLS (with or without a wholesaler) also agents themselves?

Also, yesterday an agent said that he wouldn't recommend us (even me *with* an agent!) pursuing FSBOs because those aren't protected by the same disclosure requirements, so I might end up with an undisclosed problem. Does this seem like a realistic concern to heed?

Thanks!